quiz 1

Question 1

consumer behavior

Answer 1

the process we use to select, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy needs/desires

Question 2

what influences consumer behavior?

Answer 2

internal, situational, social factors

Question 3

types of decision-making

Answer 3

extended, limited, habitual

Question 4

Problem recognition

Answer 4

Occurs whenever the consumer sees a significant difference between his/her current state and the desired/ideal state

Question 5

Information search

Answer 5

Consumers need adequate information to make a decision
– Internal & External Search
– Pre-purchase & Ongoing Search
– Influence of Prior Knowledge

Question 6

heuristics (mental rules of thumb)

Answer 6

– Price = Quality
– Brand loyalty
– Status Quo bias
– Country of origin
– Affect
– Normative tactics

Question 7

Contextual cues

Answer 7

– Sunk costs
– Endowment Effect
– Compromise effect (extremeness aversion)
– Decoy effect (Asymmetric dominance)

Question 8

Post-purchase evaluation

Answer 8

Consumer satisfaction/dissatisfaction after purchase of a product is critical

Question 9

Internal influences

Answer 9

• Perception
• Motivation
• Learning
• Attitudes
• Personality
• Age groups
• Lifestyle

Question 10

Perception

Answer 10

Process by which we select, organize, and interpret information from outside world

Question 11

Motivation

Answer 11

Internal state that drives us to satisfy needs by activating goal-oriented behavior

Question 12

Learning

Answer 12

A relatively permanent change in behavior caused by information or experience
- behavioral
- classical conditioning
- operant conditioning

Question 13

Attitudes

Answer 13

learned predispositions to respond favorably or unfavorably to stimuli on the basis of relatively enduring evaluations of people, objects, and issues.

Question 14

Personality

Answer 14

The set of unique psychological characteristics that consistently influences the way a person responds to situations in the environment

Question 15

Lifestyle

Answer 15

Marketers seek to describe people according to activities, interests, and opinions

Question 16

Situational factors

Answer 16

Physical environment
– Store environment – layout, mirrors, signage
– Web environment
– Sensory impacts – scents, lighting, colors

Scarcity (of product and of time)
– Time poverty (feeling as though you are running out of time)
- Limited time offers
- Flash sales

Question 17

Social influences

Answer 17

• Culture
• Subculture
• Social Class
• Group Membership
• Opinion Leaders
• Gender Roles

Question 18

Culture

Answer 18

The values, beliefs, customs, and tastes produced or practiced by a group of people

Question 19

Social class

Answer 19

The overall rank or social standing of groups of people within a society, according to factors such as family background, education, occupation, and income

Question 20

Reference Groups

Answer 20

– Aspiration Group
– Associative Group
– Dissociative Group

Question 21

Opinion leaders

Answer 21

• Are frequently able to influence others’ attitudes or behaviors
  – Have high interest in product category
  – Update knowledge by reading, talking with
  salespeople, etc.
  – Impart both positive and negative product
  information
  – Are among the first to buy goods

Question 22

Gender Roles

Answer 22

Society’s expectations regarding appropriate attitudes, behaviors, and appearance for men and women

Question 23

Ethics

Answer 23

personal moral principles and values

Question 24

Laws

Answer 24

society’s values and standards that are enforceable in courts

Question 25

Ethical Dimension of Social Responsibility

Answer 25

Companies have a responsibility to fulfill ethical obligations to various stakeholders

Question 26

Corporate Responsibility

Answer 26

Corporations owe certain ethical, financial and social obligations to the community in which they operate

Question 27

Sustainability Strategy

Answer 27

Starting out with a grand vision – 100% renewable energy, or zero waste to landfill - can quickly lead to being adrift without a plan of action

Question 28

Social Responsibility

Answer 28

Global brands are expected to address social problems regarding what they sell and how they conduct business They are also expected to conduct themselves to a higher standard than local competitors

Question 29

Green Marketing

Answer 29

marketing efforts that promote the environmentally conscious production process of a product and the product itself

Question 30

Environmental Scan

Answer 30

Process of continually acquiring information on events occurring outside the organization. This is done to identify and interpret potential trends that might impact the business.

Question 31

Sociocultural Environment

Answer 31

Changes in Cultural Values, Ideas, Attitudes – E.g., Health and Fitness – Goods vs. Experiences – Gender roles – Racial and ethnic diversity * Increasing expectation of authenticity and transparency * Importance of education * Growing reliance on peers as brand advocates * Language – Impact of language on brand name

Question 32

Socio-Cultural Forces

Answer 32

Changes in cultural values alter people’s needs and desires for products

Question 33

Competitive Forces

Answer 33

Perfect/Pure Competition – Many sellers with nearly same products Monopolistic Competition – Large number of sellers competing, offering similar products Oligopoly – Competition with only few suppliers(wireless providers) Monopoly – Competition with only one supplier, almost no substitutes

Question 34

Regulatory/Political and Legal Forces

Answer 34

Enactment of legislation Legal decisions interpreted by courts through civil and criminal cases Presidential administrations, Congressional composition, state & federal law

Question 35

For-Profit

Answer 35

often called a business firm

Question 36

Non-Profit

Answer 36

non-governmental organization that does not have profit as its main goal (Boys and Girls Club, American Heart Association, Khan Academy)

Question 37

Government Agency

Answer 37

provides a specific service to its constituents (Census Bureau)

Question 38

Organization Structure

Answer 38

* Corporate Level – top management directs overall strategy for the entire organization (boards, senior mgt) * Strategic Business Unit (SBU) – a subsidiary of an organization that targets a specific market * Functional Level – a more specific group of specialists that serve certain functions (e.g. finance department, marketing department)

Question 39

Strategic Planning

Answer 39

Ongoing process of making decisions that guide the firm; helping managers make informed decisions

Question 40

Strategy

Answer 40

An organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals.

Question 41

Core Values

Answer 41

fundamental, passionate and enduring principles that guide the conduct of an organization

Question 42

Organizational culture

Answer 42

set of values, ideas, attitudes and norms of behavior that is learned and shared among members of the organization

Question 43

Mission statement

Answer 43

A formal declaration that describes the firm’s overall purpose and what it hopes to achieve in terms of its customers, products, and resources. It should be clear, concise, meaningful and inspirational.

Question 44

Key Goals or Objectives

Answer 44

Need to be S.M.A.R.T. (specific, measurable, attainable, relevant and have a timeline) May be financially focused, or focused on other factors such as satisfaction, technological innovation, etc.

Question 45

Marketing Plan

Answer 45

Road map for the marketing actions of an organization for a specified future time period (e.g., 1 year, 3 years depending on market)

Question 46

Implementation

Answer 46

How to turn the plan into results

Question 47

Evaluation/Control

Answer 47

Measuring actual performance, comparing performance to the objectives, making adjustments * Marketing metrics: – Return on marketing investment (ROMI) – New customer acquisition cost – Customer retention rates – Customer satisfaction

Question 48

Marketing

Answer 48

activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large

Question 49

4 Ps of Marketing

Answer 49

* Product – what is being offered (good, service, idea) * Price - what is being exchanged for the product * Promotion – how is this being communicated to the consumer * Place – how is the product getting to the consumer

Question 50

Value Proposition

Answer 50

Benefits that an organization promises to the customer: There must be a belief that this promised value will be delivered and experienced